11.Poor financial management – weak understanding of the working capital cycle (the lags in the system of payment)

Solutions to a liquidity crisis…

Stimulate sales for cashSell off stocks of raw materialsSell off fixed assets and lease them backChase up overdue accountsSell debt to a factoring companyOnly make essential purchasesExtend credit with selected suppliersReduce personal drawings from the businessNegotiate additional short term loans.